Scottish rents level out as supply improves

Scotland’s private rented sector has shown signs of stabilisation over the past year, with rent rises broadly tracking inflation.

DJ Alexander says its analysis of the latest statistics shows average rents for two-bedroom homes rose by £28 a month to £921 in the year to September 2025.

That represents a 3.1% annual increase, matching inflation over the same period.

One-bedroom properties also rose by £28 a month, a 4% increase, taking average rents to £738.

Three-bedroom homes saw a smaller uplift of 1.6%, up £18 to £1,154, while four-bedroom rents fell by 1.5%, down £26 to £1,767.

Rent controls brough higher rents

The firm’s chief executive, David Alexander, said: “These figures highlight just how effective the market has been in meeting demand in the private rented sector over the last year.

“As more homes have become available then the average rents have stabilised and reflect an annual rate in line with the historic trend rather than the blip caused by the introduction of rent controls in September 2022.”

He added: “The introduction of rent controls distorted the market and resulted in rapid increases in rents as the legislation reduced the volume of properties available.

“Supply dried up resulting in greater demand and higher rents.

“The 12-month period from September 2022 to September 2023 saw rents in all sizes of properties experience double digit increases at a time when inflation was 9%.”

Regional rent differences

Regional differences are stark with Lothian recording the highest average rent for a two-bedroom home at £1,356.

Dumfries and Galloway was the cheapest at £569.

The firm says just four parts of Scotland have seen rents keep pace with inflation since 2010.

There are Lothian, Greater Glasgow, Dundee and Angus, and Forth Valley all recorded cumulative growth at or above the 54.7% rise.

In the other 14 areas, rents have fallen in real terms.

Rents rise at less than 1%

Across Scotland as a whole, average rents increased by 67% between 2010 and 2025.

That’s 12% above inflation, equivalent to less than 1% growth a year.

Mr Alexander said: “There are obvious hotspots in Edinburgh and Glasgow where demand is, and will always be, higher than elsewhere but these figures show that even in popular areas rent rises have been modest over the last year.

“In order to retain reasonable rent increases, it is essential to continue a strong supply of properties through the encouragement of investors and landlords.”